* Advisers are financially rewarded merely if they increase gross revenues and recruiting. The strong nexus between public presentation and results ( strong P-to-O instrumentality in Expectancy Theory ) leads to high employee motive.
* Mary Kay’s car wages plan is extremely valued by employees ( high result valencies in Expectancy Theory ) and has spurred many advisers to execute at really high degrees. Automobile wages is contingent on the meeting of lower limit monthly gross revenues marks.
* Consultants’ demand for belonging and esteem ( Need Hierarchy Theory ) is cost efficaciously leveraged by the assorted acknowledgment plans.
* Mary Kay Cosmetics has developing systems to better public presentation ( better E-P in Expectancy theory ) . Advisers have entree to preparation manuals. hebdomadal meetings. sponsored conferences. a hot-line. and other ongoing support.
* Opportunities for promotion and accomplishment are clear and crystalline leting advisers to prosecute their growing and development demands ( incentives in the Motivator-Hygiene theoretical account ) .
* Advisers have high liberty and flexibleness. They are basically independent franchisees. As independent gross revenues people. they have immediate feedback on their ain public presentation.
* VIP advisers work extra hard to go managers. but are frequently excessively ill-prepared. inexperienced. and missing in squad strength to run into the demands of go oning manager degree public presentation ( weakening E-P in Expectancy Theory ) . The leap to manager degree may be excessively ambitious ( Goal Theory ) . but manager degree larning supports may be unequal ( Social Learning Theory ) . Failure follows. self-efficacy is damaged. and so is the director’s unit morale. ERG Theory suggests that satisfaction-progression
may be replaced by frustration-regression.
* Many advisers have stagnated at a “maintenance” gross revenues degree as they become satisfied with retaining their VIP autos. Inadequate inducements exist for these advisers to travel beyond this care degree. particularly if they are non per se interested in accomplishing manager position.
* The per centum of the gross revenues force winning autos has doubled. but auto “tenure” has declined ensuing in big losingss for autos that are in service merely a short clip.
A brief analysis of the MPO strengths and jobs identified
Mary Kay Cosmetics has effectual inducement. rating. and acknowledgment plans that are clearly based on public presentation. However. Mary Kay Cosmetics must give VIP advisers incentives to travel beyond “maintenance” degree public presentation and guarantee that inexperient VIP advisers do non come on excessively quickly to manager position. Director degree turnover is excessively high. The company does a good occupation back uping adviser degree development. but must better support and preparation for freshly promoted managers. Mary Kay Cosmetics must besides minimise the cost of keeping low executing advisers. The challenge is cut down costs while bettering gross revenues force morale and motive.
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